Do you have a great business idea and want to make it official? Are you looking to form an LLC in Illinois? If so, then you need to read this blog post! In it, we will discuss the process of filing articles of incorporation in Illinois. We will also provide some tips on what to include in your articles of incorporation. So if you’re ready to make your business dreams a reality, keep reading!
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What is an Illinois Articles of Incorporation
The Articles of Incorporation, also known as the Certificate of Incorporation or Corporate Charter, is the document that officially creates a corporation. It is filed with the Secretary of State in the state where the corporation will be headquartered. The Articles of Incorporation must include the corporation’s name, its purpose, the names and addresses of the directors, the number of shares it is authorized to issue, and other information as required by state law. Once the Articles of Incorporation are filed, the corporation is officially formed and can begin conducting business.
In Illinois, the Articles of Incorporation must be filed with the Secretary of State’s office. The filing fee is $75, and there is a $25 fee for each additional class of stock. The Articles of Incorporation must include the following information: the corporation’s name and address; the names and addresses of the directors; the number of shares the corporation is authorized to issue; and other information as required by state law. Once the Articles of Incorporation are filed, the corporation is officially formed and can begin conducting business.
What information must be included in your filing of Articles of Incorporation in Illinois
When you file Articles of Incorporation in Illinois, you must include the following information:
- Names and addresses of the corporation’s incorporators.
- LLC’s name and address.
- LLC’s duration (if it is to exist for a limited time).
- Purpose of the LLC.
- Names and addresses of the directors.
- Whether or not the LLC will have members.
- A number of shares that the LLC is authorized to issue, as well as the par value of those shares.
Finally, you must sign the Articles of Incorporation and have them notarized. Once you have completed these steps, you can file your Articles of Incorporation with the Secretary of State.
What are the benefits of filing Articles of Incorporation in Illinois
Establish your business identity: When you incorporate, you create a legal entity that is separate from yourself. This can help to shield your personal assets from business debts and liabilities.
Attract investors: A corporation is a more attractive investment than a sole proprietorship or partnership. This is because investors are more confident that their investment is protected from personal liability.
Raise capital: A corporation can issue stock to raise capital. This gives you the ability to grow your business without having to take out loans or sell equity to partners or venture capitalists.
Limit liability: Shareholders of a corporation are only liable for the amount of their investment. This protects them from being held personally responsible for the debts of the company.
Enjoy tax benefits: Corporations are taxed at a lower rate than sole proprietorships and partnerships. They also have the ability to deduct certain expenses, such as health insurance and retirement plans.
Continuity of ownership: A corporation can exist indefinitely, even if its shareholders die or leave the company. This makes it an ideal structure for businesses that are family-owned or passed down.
What are the disadvantages of not filing Articles of Incorporation in Illinois
Illinois is one of a few states that require businesses to file Articles of Incorporation in order to operate legally. While this process is relatively simple and straightforward, there are a few potential disadvantages to consider.
- First, businesses that fail to file Articles of Incorporation may be subject to fines and penalties.
- Additionally, their status as a legal entity may be called into question, which could lead to difficulties in securing funding or entering into contracts.
- Finally, not filing Articles of Incorporation may make it more difficult to sell or transfer ownership of the business in the future.
For these reasons, it is important to weigh the pros and cons of filing Articles of Incorporation before starting a business in Illinois.
What are some common mistakes people make when filing an Articles of Incorporation in Illinois
When it comes to filing an Articles of Incorporation in Illinois, there are a few common mistakes that people tend to make. Here are four of the most common:
- Not verifying that the company name is available: Before you can file your Articles of Incorporation, you need to make sure that the company name you want to use is available. You can do this by searching the Secretary of State’s website or by calling the office directly.
- Failing to include all of the required information: The Articles of Incorporation must include certain important information, such as the names and addresses of the incorporators, the company’s purpose, and the amount of authorized capital stock. If any of this information is missing, your filing will be incomplete and could be rejected.
- Not submitting the correct filing fee: The filing fee for an Articles of Incorporation in Illinois is $150. If you fail to include this fee, your filing will be rejected. Make sure to check with the Secretary of State’s office for the most up-to-date fee amount before you submit your paperwork.
- Not having all of the necessary signatures: In order for an Articles of Incorporation to be valid, it must be signed by all of the incorporators. Be sure to have all signatures collected before you submit your filing.
These are just a few of the most common mistakes people make when filing an Articles of Incorporation in Illinois. By taking the time to avoid these errors
How to file Articles of Incorporation in Illinois
Filing Articles of Incorporation in Illinois is a multi-step process, but it’s well worth it for the protection and liability it affords your business. Here’s everything you need to do to get started:
- Choose a unique name for your corporation. This name must be distinguishable from any other company registered in Illinois.
- File a Certificate of Authority with the Secretary of State’s office. This document grants your corporation the right to do business in Illinois.
- Draft Articles of Incorporation and file them with the Secretary of State’s office. Be sure to include the following information: the corporation’s name, its purpose, the names and addresses of its incorporators, the number of shares it is authorized to issue, and the duration of its existence (if it is not to exist in perpetuity).
- Pay the filing fee. The current fee is $150.
- Wait for approval from the Secretary of State’s office. Once approved, your LLC will be officially recognized in Illinois and can begin doing business.
When filing your Articles of Incorporation in Illinois, be sure to include all the required information and make sure that everything is filled out correctly. Filing incorrect or incomplete information can lead to delays in your company’s registration process or even worse – having your company’s registration denied altogether.
Frequently Asked Questions
How do I get a copy of my articles of incorporation in Illinois?
You can obtain a copy of your articles of incorporation by contacting the Secretary of State’s office directly.
What are articles of incorporation Illinois?
The Illinois Articles of Incorporation is the official document filed with the Secretary of State to formally incorporate a company. It requires the appropriate information about the company name, contact information, stock issuance, and other details.
Does Illinois require articles of incorporation?
Yes, all businesses in Illinois must file articles of incorporation with the Secretary of State’s office in order to be formally recognized as a company. This document is necessary for the legal protection and liability it provides to business owners.
How much does Articles of Incorporation cost in Illinois?
150 registration fee + franchise fee ($25 minimum) + $100 processing fee if desired. A processing fee is required if you register online. The franchise tax is calculated at $1.50 per $1,000 of paid-up capital represented in this state.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.